U.S. Tariffs May Impact Switch 2 Demand, Nintendo President Warns

Nintendo has unveiled its financial results for the fiscal year 2025 (April 2024 to March 2025), and during the online press conference on May 8, President Shuntaro Furukawa shared insights into the company's ambitious goals for the upcoming Switch 2. As the June 5 launch date nears, the demand for the Switch 2 is surging, particularly in Japan where Nintendo's pre-order lotteries have been overwhelmingly popular. To meet this high demand, Nintendo is ramping up production and anticipates selling 15 million Switch 2 units and 45 million software units worldwide during the 2026 fiscal year (April 2025 to March 2026).

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales for FY2026 by 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and increase final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD).

However, Furukawa expressed concerns about potential challenges, particularly in the U.S. market, which has been a key region for the original Switch. The Switch 2, with its enhanced features and improvements, comes at a higher price point, which could pose hurdles. Furukawa noted, as reported by the Yomiuri Shimbun, "The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch." The original Switch sold 15.05 million units in its first year, and Nintendo is targeting similar sales for the Switch 2.

A significant concern raised by Furukawa is the impact of U.S. tariffs, which could affect Nintendo's profitability by "tens of billions of yen." He highlighted that if tariffs increase the cost of daily necessities, consumers might have less disposable income for luxury items like game consoles. Adjusting the Switch 2's price in response to tariffs could potentially reduce demand.

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Analysts have labeled Nintendo's forecast of 15 million Switch 2 sales as "conservative," citing the uncertainties posed by tariffs. Despite these challenges, the demand for the Switch 2 remains robust. Following a delay due to tariff issues, pre-orders opened on April 24 with the console priced at $449.99, and they were met with enthusiastic response. Nintendo has also cautioned U.S. customers who pre-ordered via the My Nintendo Store that release date delivery is not guaranteed due to the intense demand.

For those eager to secure their Switch 2, check out IGN's Nintendo Switch 2 pre-order guide for detailed information.